Ques 1 RM’000

Sec 4(a) Business income

Business income (derived from Malaysia) 34
Business income (not derived from Malaysia) Nil
Sec 4 (c) Interest income
Interest 15
Sec 4 (d) Rental income
Rent 20
Aggregate income 69
Less:
Annuity paid to window of settlor (15)
Non-Malaysia business income remitted to Nil
Malaysia
Cost of administering the trust Nil
Donation to an approved institution (4)
Total/Chargeable income 50
@24%
Income tax payable 12

RM’000
Chargeable income 50
(-) Tax payable (12)
Net chargeable income 38

Beneficiary A Beneficiary B
RM’000 RM’000
Trust income 50x50% 25 25
Total income 25 25
Relief (9) - (non resident cannot
claim relief)
Chargeable income 16 25

(1-tax) x trust income =19000

(1-24%) x trust income =19000

Trust income = 19000/0.76 = 25000

If ques say pay annuity to beneficiary A, then annuity will be charge under income of beneficiary A
S4(e)
Question 2

RM
Chargeable income 100,000
(-) Tax payable 100,000x24% (24,000)
Net chargeable income 76,000

Beneficiary A (Abi) Beneficiary B (Bibi)

RM RM
Trust income 100,000x50% 50,000 50,000
Total income 50,000 50,000
Less: Relief (9,000) - (non resident cannot
claim relief)
Annuity (the beneficiary pays the annuity, not (1,200)
receive, so NOT income)
EPF (4,000)
Chargeable income 35,800 50,000

Abi RM
Income tax on the first 35,000 600
Income tax on the balance (35800-35000) x 8% =800 x 8% 64
Income tax payable 664
Less: S110 set off 24000/2 (12,000)
Tax refund (11,336)
Abi received income (net of tax) of RM38,000+11,336 = RM49,376

S110 is because above Abi already pay 24000/2=12000, then below can deduct from the tax payable
because he already pay le. If charge again jiu double taxation.

Bibi RM
Income tax on 50,000 x 30% 15,000
Income tax payable 15,000
Less: S110 Set off (12,000)
Net tax payable 3,000
Bibi received income (net of tax) of RM38,000 – RM3,000 – RM35,000
Question 3

CH de 33000 is from the ‘received RM33000 for year ended 2021’